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Mar 31, 2022

Quest Diagnostics Q1 2022 Earnings Report

Reported a decrease in revenue and EPS due to decline in COVID-19 testing revenue, while base business showed strong growth and full-year guidance was raised.

Key Takeaways

Quest Diagnostics reported a decrease in first-quarter revenue by 4.0% to $2.61 billion, with a diluted EPS of $2.92, down 15.6% compared to the previous year. However, the base business revenues increased by 6.3%. The company raised its full-year 2022 guidance, expecting a reported diluted EPS between $7.88 and $8.38 and an adjusted diluted EPS between $9.00 and $9.50.

First quarter revenues decreased by 4.0% to $2.61 billion.

Reported diluted EPS decreased by 15.6% to $2.92.

Base business revenues increased by 6.3% to $2.01 billion.

Full year 2022 reported diluted EPS is now expected to be between $7.88 and $8.38.

Total Revenue
$2.61B
Previous year: $2.72B
-4.0%
EPS
$3.22
Previous year: $3.76
-14.4%
Revenue per requisition
-5.2%
Previous year: 20.5%
-125.4%
Requisition volume
1.3%
Previous year: 25.6%
-94.9%
Gross Profit
$965M
Previous year: $1.09B
-11.8%
Cash and Equivalents
$712M
Previous year: $1.23B
-42.1%
Free Cash Flow
$417M
Previous year: $645M
-35.3%
Total Assets
$13.4B
Previous year: $13.9B
-3.5%

Quest Diagnostics

Quest Diagnostics

Quest Diagnostics Revenue by Segment

Forward Guidance

The company raises its Full Year 2022 guidance as follows: Net revenues $9.2 billion to $9.5 billion, Base business revenues $8.35 billion to $8.50 billion, COVID-19 testing revenues $0.85 billion to $1.00 billion, Reported diluted EPS $7.88 to $8.38, Adjusted diluted EPS $9.00 to $9.50, Cash provided by operations At least $1.6 billion, Capital expenditures Approximately $400 million.

Positive Outlook

  • Net revenues are expected to be between $9.2 billion and $9.5 billion.
  • Base business revenues are expected to increase by 4.1% to 6.0%.
  • COVID-19 testing revenues are expected to be between $0.85 billion and $1.00 billion.
  • Reported diluted EPS is expected to be between $7.88 and $8.38.
  • Adjusted diluted EPS is expected to be between $9.00 and $9.50.

Challenges Ahead

  • Net revenues are expected to decrease by 14.7% to 11.9%.
  • COVID-19 testing revenues are expected to decrease by 69.3% to 63.9%.
  • Capital expenditures are expected to be approximately $400 million.
  • The company's future performance is subject to risks and uncertainties, including the impact of the COVID-19 pandemic.
  • Adverse results from pending or future government investigations, lawsuits or private actions could negatively impact the company's financial results.